IMF cuts 2016 global growth forecasts

International Monetary Fund (IMF), via its latest outlook released today, revised global growth forecasts lower and stressed the need for monetary stimulus.

GDP forecasts

Global growth in 2016 now seen at 3.2% from previous forecast of 3.4%

US 2016 GDP cut to 2.4% vs 2.6% prior

Eurozone 2016 GDP cut to 1.5% vs 1.7% prior

Japan 2016 GDP cut to 0.5% vs 1.0% prior

China 2016 GDP revised higher to 6.5% from 6.3% prior

Key points

Fed hikes should be smooth and gradual and well communicated

Says fragile world economy needs monetary stimulus

ECB should keep monetary policy accommodation for an extended period and should be prepared to use other tools

Brexit would create severe regional and global damage

Sees further broad based reductions in their baseline growth forecasts for 2016 & 2017